Globalwafers Co., Ltd. · TPEX:6488
Globalwafers — H1 2021 Earnings Presentation
40 slides from Globalwafers's earnings presentation, August 2021
Slide 1: GlobalWafers 1H21 Results Presentation
GlobalWafers (6488 TT) 1H21 Results Presentation August, 2021 © GlobalWafers Co., Ltd. All rights reserved
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by GlobalWafers Co., Ltd. (the “Company”). This presentation and the materials provided herewith do not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement
Slide 3: Executive Comments
Executive Comments ➢ 1H21 ⚫ Revenue ✓ Both June and Q2 revenues hit the third highest in the history. ✓ 1H revenue exceeded NTD$30 billion with 10.3% YoY! ⚫ EBITDA ✓ Q2 → record high ✓ 1H → the third highest in the history ⚫ Net Income ✓ Q2 → record high ⚫ EPS ✓ Q2 EPS NTD 9.09 → record high ✓ 1H EP
Slide 4: Sustainability, ESG Highlights, Planned Financing Measures
➢ Commitment for Sustainability ⚫ Commit 100% renewable energy usage by 2050 in all global operations sites. ⚫ Progressive goals ✓ 20% by 2030, 35% by 2035, 50% by 2040, 100% by 2050 ⚫ Approaches: ✓ Build solar power systems in the group ✓ Sign Power Purchase Agreement (PPA) ✓ Purchase Renewable Ene
Slide 5: Siltronic Transaction and Industry Outlook
➢ Siltronic Transaction ⚫ The regulatory approval process of GlobalWafers’ acquisition of Siltronic remains on track with closing of the transaction expected in the second half of 2021. (To date, GlobalWafers has received clearance from the German, Austrian, Korean, Taiwan, and Singapore anti-trust
Slide 6: Commitment for Sustainability
Commitment for Sustainability © GlobalWafers Co., Ltd. All rights reserved 5
Slide 7: Commitment to 100% Renewable Energy
Commitment to 100% Renewable Energy ➢ GlolbalWafers commits to achieving 100% renewable energy usage over all of group’s global operation bases by 2050, aiming to reduce carbon emission by practical actions. Progressive Goals and Climate Blueprint 20 % 1 3. Carbon removal: 1. Adopt renewable energy:
Slide 8: Treedom – Green the Planet
Treedom – Green the Planet ➢ Treedom is an innovative social platform that help corporations to plant trees in Italy, Africa and South America. Via participation, GlobalWafers directly finances farmers around the world, brings environmental, social and financial benefits to their communities, suppor
Slide 9: Inclusive Workplace
Inclusive Workplace ➢ GlobalWafers is committed to supporting gender equality, advancing women in the workplace globally. Our Utsunomiya Factory (MJL) received the highest level “Eruboshi” Certification from Japan government, reflecting our sustained dedication to improving female career path. Utsun
Slide 10: About Siltronic Transaction
About Siltronic Transaction © GlobalWafers Co., Ltd. All rights reserved 9
Slide 11: Development of Takeover Offer for Siltronic
Development of Takeover Offer for Siltronic ➢ GlobalWafers achieved a final acceptance rate of 70.27% ➢ Settlement of the Takeover Offer is expected in the second half of 2021, following receipt of required regulatory approvals Past events Future events Ad-hoc announcement Reduction of acceptance Au
Slide 12: Industry Overview
Industry Overview © GlobalWafers Co., Ltd. All rights reserved 11
Slide 13: Global GDP Growth Forecast
Global GDP Growth Forecast ➢ The World Bank states that following a -3.5% contraction caused by the COVID-19 pandemic in 2020, the global economy is set to expand 5.6% in 2021—its strongest post-recession pace in 80 years. ➢ The recovery is underpinned by steady but highly uneven global vaccination
Slide 14: Worldwide Semiconductor Market Forecast (By Region)
Worldwide Semiconductor Market Forecast (By Region) ➢ WSTS expects the worldwide semiconductor market growth to rise from 6.8% in 2020 to outstanding 19.7% in the year 2021, which corresponds to a market size of US$ 527 billion, and further to US$ 573 billion with 8.8% YoY in 2022. All regions are e
Slide 15: Worldwide Semiconductor Market Forecast (By Product)
Worldwide Semiconductor Market Forecast (By Product) ➢ The largest growth contributors are Memory with 31.7%, followed by Sensors with 22.4% and Analog with 21.7% in 2021. All other major product categories are also expected to show double-digit growth-rates, with the exceptions of Optoelectronics w
Slide 16: High-Volume Fabs Start Construction
High-Volume Fabs Start Construction ➢ Semiconductor manufacturers worldwide will have started construction on 19 new high-volume fabs by the end of this year and break ground on another 10 in 2022 to meet accelerating demand for chips across a wide range of markets including communications, computin
Slide 17: Worldwide IC Market Forecast to Top $500 Billion in 2021
Worldwide IC Market Forecast to Top $500 Billion in 2021 ➢ Strong demand across the entire IC market this year is projected to lift sales for the total IC market 24% and break through the $500 billion plateau for the first time in history. ➢ It is forecast to see continued growth next year and again
Slide 18: Memory Upswing Returns, New Record High Expected in 2022
Memory Upswing Returns New Record High Expected in 2022 ➢ Fueled by economic recovery and the transition to a digital economy, memory IC sales are forecast to reach $180.4 billion in 2022, exceeding the previous record high set in 2018. Total Memory IC Market (Unit: $bn) 220 180 163 155 130 127 110
Slide 19: Global Electric Vehicle Market
Global Electric Vehicle Market ➢ The global electric vehicle market size is projected to grow from 4,093 thousand units in 2021 to 34,756 thousand units by 2030, at a CAGR of 26.8% underpinned by growing demand for low emission commuting and governments supports. Global Electric Vehicle Market (Thou
Slide 20: 5G Set to Penetrate Every Region by 2026
5G Set to Penetrate Every Region by 2026 ➢ 5G commercialization is moving at a rapid pace, service providers continue to invest in 5G deployments to further fuel 5G subscription growth. 5G will account for 65%, 69% and 84% of North East Asian, West European and North American mobile subscriptions in
Slide 21: Performance Update
Performance Update © GlobalWafers Co., Ltd. All rights reserved 20
Slide 22: Financial Highlights
Financial Highlights ➢ 1H21 ⚫ Revenue ✓ Both June and Q2 revenues hit the third highest in the history. ✓ 1H revenue exceeded NTD$30 billion with 10.3% YoY! ⚫ EBITDA % ✓ Q2 → record high ✓ 1H → the third highest in the history ⚫ Net Income ✓ Q2 → record high ⚫ EPS ✓ Q2 EPS NTD 9.09 → record high ✓ 1
Slide 23: Financial Highlight: Q221 vs. Q121
Financial Highlight : Q221 vs. Q121 (NT$mn) Q221 Q121 QoQ Revenue 15,208 14,806 2.7% EBITDA*1 6,919 5,051 37.0% EBITDA % 45.5% 34.1% 11.4% EBIT 5,438 3,544 53.5% Operating Profit 4,259 3,952 7.8% Operating Profit % 28.0% 26.7% 1.3% Net Profit 3,955 2,690 47.0% Net Profit % 26.0% 18.2% 7.8% EPS NT$9.
Slide 24: Financial Highlight: Q221 vs. Q220
Financial Highlight : Q221 vs. Q220 (NT$mn) Q221 Q220 YoY Revenue 15,208 13,701 11.0% EBITDA*1 6,919 5,609 23.4% EBITDA % 45.5% 40.9% 4.6% EBIT 5,438 4,344 25.2% Operating Profit 4,259 4,229 0.7% Operating Profit % 28.0% 30.9% -2.9% Net Profit 3,955 3,397 16.4% Net Profit % 26.0% 24.8% 1.2% EPS NT$9
Slide 25: Financial Highlight: 1H21 vs. 1H20
Financial Highlight : 1H21 vs. 1H20 (NT$mn) 1H21 1H20 YoY Revenue 30,014 27,216 10.3% EBITDA*1 11,970 10,624 12.7% EBITDA % 39.9% 39.0% 0.8% EBIT 8,982 8,189 9.7% Operating Profit 8,211 8,034 2.2% Operating Profit % 27.4% 29.5% -2.2% Net Profit 6,645 6,278 5.8% Net Profit % 22.1% 23.1% -0.9% EPS NT$
Slide 26: Revenue & Gross Margin
Revenue & Gross Margin Revenue & Gross Margin (NT$mn) Revenue GM % 15,624 15,591 15,208 15,162 14,694 14,303 14,806 41.0% 13,506 13,506 13,701 14,006 14,137 14,368 39.0% 40.1% 13,910 38.5% 38.2% 38.6% 37.8% 37.2%36.3% 36.7% 36.2% 37.0% 36.5% 12,448 35.1% 11,978 11,205 30.4% 10,581 26.9% 26.3% 24.4%
Slide 27: EBITDA & EPS
EBITDA & EPS EBITDA EPS (NT$mn) (NT$) EBITDA EBITDA to Revenue 31.18 31.35 30.11 22,712 22,648 21,967 39.7% 39.9% 38.5% 39.0% 26.0% 25.7% 26.4% 26.4% 12,221 11,970 15.27 12.68 16.4% 6.14 6.60 5.80 4,053 4,087 4,046 3,025 2.54 2013 2014 2015 2016 2017 2018 2019 2020 1H21 2013 2014 2015 2016 2017 2018
Slide 28: Income Statement
Income Statement Income Statement (NT$mn) 2013 2014 2015 2016 2017 2018 2019 2020 1H21 Revenue 15,570 15,922 15,310 18,427 46,213 59,064 58,094 55,359 30,014 Growth (%) - 2.3% -3.8% 20.4% 150.8% 27.8% -1.6% -4.7% - Gross Profit 3,663 3,728 4,073 4,130 11,808 22,299 22,847 20,568 10,777 Gross Profit
Slide 29: Balance Sheet
Balance Sheet Balance Sheet (NT$mn) 2013 2014 2015 2016 2017 2018 2019 2020 1H21 Assets Cash and cash equivalents 1,536 2,685 3,662 5,628 18,794 35,214 32,822 22,439 46,768 Account receivable 3,165 3,694 4,538 7,642 7,869 9,226 8,140 8,037 8,874 Inventories 3,291 2,829 3,262 7,307 7,347 7,040 6,849
Slide 30: ESG Highlights
ESG Highlights • Responsible Growth is our principle in business practices. • GlobalWafers aims at being at the forefront of global responsibility in the aspects of environment, health & safety and corporate governance. © GlobalWafers Co., Ltd. All rights reserved 29
Slide 31: Sustainable Environment - Waste
Sustainable Environment - Waste ➢ GlobalWafers continuously improves its waste management by advancing manufacturing process to reduce waste generated as well as recycle and reuse. ➢ More than 80% of our industrial waste from our global factories could be recycled and reused. Recycle & Reuse Rate of
Slide 32: Sustainable Environment - Water
Sustainable Environment - Water ➢ GlobalWafers is fully committed to recycling (including rainwater and process water) and reuse. ➢ Our total water recovery quantity in 2020 was 5,674 Km3, gradually increased over year mainly because of the effective water recycling measures. Water Recovery in GWC G
Slide 33: Committed to Green Energy
Committed to Green Energy ➢ Through construction of solar power plants, GlobalWafers devotes to fulfilling its social responsibility to make the world greener. ➢ As of 1H21, the cumulative solar capacity reaches 17.5 MW, which could generate 21.14 million kWh electricity and equals to reducing 10,76
Slide 34: Ethical Business Practice
Ethical Business Practice Legal Compliance Codes of Ethical Conduct Achieve compliance with Formulate guidelines to be local legal requirements observed by all directors, and international managers and staff standards members. Grievance System Risk Assessment Set up grievance system Establish risk a
Slide 35: Corporate Governance
Corporate Governance ➢ GlobalWafers is dedicated to achieving corporate governance and fulfills its social responsibility. With the determination, GlobalWafers has been awarded top 5% among all listed companies for 3 consecutive years. ➢ The gender, tenure, and expertise diversity as well as the ind
Slide 36: Volunteering - Kindness Matters
Volunteering - Kindness Matters ➢ Kindness matters. GlobalWafers hopes to contribute a better tomorrow by fostering a common goal among colleagues to volunteer and share. ➢ Our community services include Christmas gifts for underprivileged children and fund raising for the elderly living alone, assi
Slide 37: Sharing - Make a Difference
Sharing - Make a Difference ➢ GlobalWafers encourages employees to spread their love by giving back to society, caring for disadvantaged groups so as to fulfill corporate social responsibility. ➢ In Taiwan, our activities include “Disable Elders Home Showering”, “Daycare for Children After School”,
Slide 38: Caring - Employee Welfare
Caring - Employee Welfare ➢ Happy employees stay. By fostering a genuinely caring atmosphere that focuses on employee welfare, GlobalWafers not only motivates employees but also raises the productivity levels. ➢ GlobalWafers enhance overall employee benefits through developing a holistic plan with p
Slide 39: Q&A
Q&A © GlobalWafers Co., Ltd. All rights reserved 38
Slide 40: Thank You
Thank You © GlobalWafers Co., Ltd. All rights reserved 39